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USAA Life Insurance Review

USAA life insurance review
Insurance Quotes 2 Day Team

Written By Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent close to 30 years in the insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health.  Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

Holly Mitchell  &

Holly Mitchell’s background in life insurance insurance goes back to 1985 when she worked for her father who was a New York Life agent. Holly has a marketing degree from Auburn University and has had a life insurance license since 2008. In addition to advising life insurance for customers all around the country, Holly is our website fact checker.

Rob Pinner   &

Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

Louis LaBash

Results-driven and innovative life insurance professional with 30 plus years of life insurance industry sales and marketing experience. Recognized as a pioneer in the field, leveraging phone and internet channels to exceed personal sales of over $100 million during the first decade of the 21st century. Creator of a highly effective intuitive IUL life insurance sales software that facilitated the sale of millions of dollars of indexed universal policies by numerous life insurance agents. Proven track record as a Managing General Agent (MGA), Life Agent, IUL Life Insurance Sales Software developer, and leading-edge creator of insurance marketing tools, educational content, and delivery systems.

 4 minute read

Certainly, when considering life insurance for you and your family, premiums will play a major role in your purchase decision. However, price alone should not be the only factor that impacts your buying decision.

Most U.S insurers receive positive ratings from insurance watchdogs but it’s still important that you are careful about who you choose to keep their promise for a lifetime. In this article, we provide a USAA Life Insurance review so that you can make an informed decision about where you put your life insurance business.

USAA Life Insurance Company

First, consumers should know that USAA provides many more insurance products than just life insurance. The USAA brand is an acronym for United Services Automobile Association which is the parent organization for many subsidiary companies that provide life, health, P&C, and other financial products.

USAA was founded by military officers back in 1922 because, at that time, military personnel were considered “high risk” and faced challenges when attempting to purchase almost any type of insurance product.  Since its founding in 1922, USAA has significantly increased its footprint across the U.S. and today is a member of the Fortune 500 group of companies.

The insurance company is now servicing over 11 million members and ranks number 24 for in-force life insurance policies. Their ranking and company size is even more remarkable when you consider that they only market to military personnel and their families.

USAA Life Insurance Company Financial Stability

Although ranked 24th for life insurance volume, USAA is ranked at the very top by the major insurance rating services in the U.S. These ratings should set anyone’s mind at ease when they contemplate whether USAA will be able to pay a claim when the worst thing happens.

Rating Service Current Rating
A.M. Best A++
Standard & Poor’s AA+
Fitch AAA
Moody’s Aa1
Comdex 99 out of 100

To top off their financial stability scoring, it’s important to note that USAA was voted Best of the Best for Top Veteran Friendly Company by U.S. Veterans Magazine in 2012 and 2014. Suffice it to say, companies do not receive these kinds of accolades unless they are delivering superior products with exceptional customer service.

USAA Life Insurance Products

USAA Life offers a complete portfolio of life insurance products that allows members of most ages to select the best insurance solution according to their needs. Since different life insurance products address different financial needs, most families have multiple types of life insurance in their household.

USAA Universal Life Insurance

Universal Life insurance was designed to address almost every financial need and provide permanent life insurance coverage with a savings component that accumulates cash value over time. Unlike other life insurance products that are “fixed” from their date of issue, universal life insurance is flexible and can accommodate life events that may require a change in premium payments and coverage.

Many universal life policyholders use their policies for accumulating cash that they can access tax free using policy loans or partial surrenders. The advantage of the cash value component means that even though the policyholder has insurance coverage for a lifetime, they can also access the cash value account in the policy to respond to financial needs of the insured. Policy loans can be taken for any reason and without credit checks, and the insured can elect to repay a loan or not repay it.

USAA Whole Life Insurance

Although priced higher than term insurance or universal life, whole life insurance is still a serious consideration for consumers looking for lifetime coverage that provides traditional guarantees and benefits. For seniors who are looking to purchase life insurance for final expenses, whole life insurance is the typical solution because of the guarantees it provides to the policyholder.

Whole life insurance is permanent and cannot be canceled by the insurer for any reason other than non-payment. The monthly premiums that are established when the policy is issued cannot be increased by the insurer for any reason and the policy builds cash value over time that can be accessed via policy loans, withdrawals, or surrender for the cash value.

USAA Term Life Insurance

The term life insurance product offered by USAA has options that other insurers do not offer. An applicant can choose between traditional term life coverage or a term life product that was designed specifically for military personnel.

USAA’s traditional term life insurance is offered with policy periods of 10, 15, 20, 25, and 30 years where the premium remains level during the term you selected. The term insurance is inexpensive and a great solution for replacing income and financially providing for your surviving loved ones.

The term coverage for military personnel comes with additional benefits that most other insurers do not offer.

  • Accelerated review for the family before an applicant is deployed
  • War coverage exclusion is removed from the policy
  • Severe injury benefit up to $25,000
  • Coverage can be increased when transferring to civilian life without proof of insurability.
  • USAA can combine term with permanent insurance for a lifetime coverage policy

Other Insurance Products from USAA

As we mentioned earlier, members can purchase multiple lines of insurance products and typically receive discounts for bundling the various policies they need. Here is a shortened list of other insurance products that individuals and families would require:

  • Auto insurance
  • Homeowners’ insurance
  • Renters’ insurance
  • Flood insurance
  • Critical and Chronic Illness
  • Motorcycle and boat insurance
  • RV insurance
  • Medicare supplement insurance
  • Medicare Part D prescription drug coverage
  • Dental and Vision coverage

Who is Eligible to Purchase Insurance from USAA

According to the USAA website, the following are eligible to purchase insurance products and become a member of USAA.

  • Personnel who are active, retired, and honorably separated officers or enlisted men or women
  • Office candidates in a commissioning program like the Academy, ROTC, or OCS/OTS
  • Adult children whose parents have or had a USAA auto or property policy
  • Widows and widowers of USAA members who have or did have a USAA auto or property policy
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author avatar
Doug Mitchell, CLU Independant Advisor
Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent almost 30 years in the life insurance industry and has also held licenses to sell securities, long-term care insurance and home and auto insurance. Doug is a Top of the Table Million Dollar Round Table member (MDRT).  MDRT is a global, independent association of the world's leading life insurance advisors.  For two years, Doug served as President of the Auburn Opelika Association of Financial Advisors and has been a member of the Million Dollar Round Table. He obtained Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award. Later in his career with New York Life he was an Executive Council Member. Doug currently serves as President of Ogletree Financial, a managing general agency serving life insurance agents and clients in all parts of the United States. Today, Doug’s main focus is servicing 1000s of policyholders and growing the agency through the reach of

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